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Comparability principle

GGvtftf10y ago
Hi, dear Mike Can we say that using the same depreciation rates for all assets defines comparability? Thanks.
MikeLittleMikeLittleTutor10y ago#1
No! Because not all assets have the same estimated useful life Comparability might be better illustrated by one year treating all asset purchases less than, say, $1,000 as an expense and then, next year, again following that same principle rather than capitalising all asset purchases, whatever their cost
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